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Among other issues, DMC wants the court to enforce its exclusive affiliation agreement with Detroit-based Karmanos. McLaren, which completed its acquisition of Karmanos in December, wants the court to allow it to jointly market services in Oakland County.

"The parties are going to go into nonbinding mediation," said Conrad Mallett Jr., DMC's chief administrative officer. "Each party will prepare a written summary of their position. The lawyers will sit down with a facilitator and begin discussing in a businesslike manner possible resolutions."

Mallett said Potts based her mediation order on Jan. 15 believing the facts of the case could lead to an agreement that could satisfy both parties. Mediation will last as long as both parties think progress is being made, he said.

"The facilitator could say progress isn't being made and refer it back to the judge," Mallett said.

Potts said she wants mediation completed by March 30.

Officials for McLaren were unavailable for comment.

Mallett said there have been no talks or settlement proposals since McLaren filed a lawsuit Oct. 30 against DMC.

McLaren officials have said the lawsuit is only intended to answer whether Karmanos can advertise and market its services with McLaren in Oakland County.

A 2005 sale agreement in which DMC sold its cancer business to Karmanos prohibited Karmanos from marketing or advertising its services in the tri-county area of Oakland, Wayne or Macomb counties with anyone other than DMC.

On Nov. 27, DMC filed a motion to dismiss McLaren's complaint for declaratory judgment. DMC said Karmanos is liable for breach of contract and McLaren for tortuous interference with its prior agreement with Karmanos.

In its lawsuit, McLaren said it wants to use Karmanos' name on its cancer centers at McLaren Oakland, a hospital in Pontiac, McLaren Cancer Clarkston and other McLaren health care facilities in Oakland County.

But DMC said it sold Karmanos' DMC's cancer business for below-market price because it included an exclusive affiliation into perpetuity.

"The benefit of the DMC's bargain is lost if non-DMC hospitals could market the Karmanos brand, diluting the goodwill and value to the DMC of that brand," said DMC in its response. "The new McLaren/Karmanos agreement breaches the DMC/Karmanos agreements."